Winnipeg, MB - The City of Winnipeg’s first quarter Financial Status Report cites a year-end projected deficit in the tax-supported operating budget totaling $13.6 million as at March 31, 2017 prior to utilizing deficit elimination measures, and additional cost mitigation measures are being recommended for consideration at next week’s Standing Policy Committee on Finance (SPC-Finance).
Contributing to the projected $13.6 million year-end deficit is an additional $5.1 million transfer to Transit and an additional $1.2 million transfer to the Winnipeg Police Service due to less than forecasted provincial funding contributions to the City in 2017.
In March 2017, a cost mitigation strategy was implemented to address the deficit that included a hiring freeze, restrictions on discretionary departmental spending including the use of external consultants and conference related travel, as well as limiting other discretionary spending. These cost mitigation measures are projected to total $4.9 million in 2017 and contribute significantly to reducing the projected year-end deficit.
To address the $13.6 million projected year-end deficit, additional cost mitigation measures totaling $4.3 million in reduced cash to capital contributions are being recommended for consideration by SPC-Finance.
As well, approximately $600,000 from other additional reserve transfers to the General Revenue Fund to help address the projected deficit are being recommended.
If these additional measures are approved by SPC-Finance, Executive Policy Committee, and Council, they would reduce the projected year-end deficit to $6.7 million.
“Variances between anticipated and actual provincial funding to the city has contributed to current year-end projections,” said Councillor Scott Gillingham, Chair of the Standing Policy Committee on Finance. “Departments must continue to keep tight control on expenses through 2017 to maintain service levels and ensure the City ends the year in balance.”
The Public Service anticipates that the projected deficit will decrease over the remainder of the year based on financial improvements typically realized from that forecasted to March 31, as well as through continued efforts to control expenses.
The Public Service will be monitoring the General Revenue Fund on a regular basis.
The City of Winnipeg’s first quarter financial update and cost mitigation administrative reports are both publicly available through the Decision Making Information System (DMIS).